A patchy labor market recovery has meant significant variations in job and income growth between regions across the U.S., which in turn has intensified the divergences across the country’s housing markets.
“Housing markets are playing out at very different speeds partly as a result of the lack of geographical breadth in the labor market. Certain sectors of the economy are performing better than others, propelling some housing markets over others,” said Fannie Mae economist Mark Palim.
One sector outperforming the housing market is our Pasadena. Prices and sales continues to move higher, and has hit peaks in most categories we watch. July was better than June, and better than a year ago.
Pasadena’s pending sales (properties under contract but not yet closed) are up 16% from June, which was 6.3% higher than May. The number of homes going into escrow in July means that August and September should be great too. Pending sales are a picture of the market 30 – 60 days in the future, so improvement in sales is likely to continue for at least a few more months. Nationally, income and job growth rules!
Number of Sales
Pasadena residential unit sales gained an amazing 23% from June. There were 172 sales in July, up from 148 in June, and up from 166 a year ago.
Homes for sale in Pasadena were exactly on par with June and about 5% more than last July. The for-sale inventory dropped to a two-month supply, the lowest level since March. The for-sale inventory over the last year peaked at 2.9 months in February, and was at its lowest level in December. You can be safe in saying that there has been about a two-month supply of homes for sale in the last 12 months.
We all want to know if prices are going up or down, and if you read the national news, we are moving slightly up or sideways in the U.S. But Pasadena’s average price per square foot is $497, and that is 2% higher for the month, and 7.4% over the last year. If your home was worth $550,000 a year ago, it’s likely worth $591,000 today, all things being equal.
Our Pasadena median price dropped nearly 2% from last month but 14.5% higher than a year ago. That probably means that the sale mix was from a slightly lower priced inventory last month, but from a higher priced array a year ago. The median number over the last year has ranged from a low of $540,000 in January 2014, to a high of $667,000 in May, 2014. June was not far off the high, with a median home price of $654,000.
Look for an active market with increasing prices through at least the next three months. More next month and national news as it develops.